Question detail
GreenGlow serves local families while changing supplier; the case evidence includes gross profit margin of ?7,653, sales of 448 units, and a 44% change in costs or demand. Justify how the business should respond to Explain how technology, the economic situation, legislation and environmental expectations can affect business activity.
Try the question, check the answer, then read the explanation to understand the curriculum point.
At a glance
Question
Type
exam_style
Style
Topic
The purpose and nature of businesses
Question
GreenGlow serves local families while changing supplier; the case evidence includes gross profit margin of ?7,653, sales of 448 units, and a 44% change in costs or demand. Justify how the business should respond to Explain how technology, the economic situation, legislation and environmental expectations can affect business activity.
Answer
Anchor the response in evidence. Apply legislation, technology, environmental expectations to GreenGlow serves local families while changing supplier, then explain how the decision changes cash inflow, costs, revenue, cash flow, or stakeholder outcomes. A balanced response considers both the benefit and the risk for suppliers, uses figures such as ?11,053 or 44%, and reaches a supported judgement based on the business objective.
Explanation
Separate the trade-offs before concluding. This explanation is anchored to Dynamic nature of business and The purpose and nature of businesses because it links the command word to scenario evidence, commercial reasoning, financial impact, and stakeholder consequences. It also separates fixed and variable costs, which helps the final judgement stay precise.
Common mistake
Dynamic nature of business common mistake 1
Giving a vague answer instead of directly addressing: Explain how technology, the economic situation, legislation and environmental expectations can affect business activity..
Answer by clearly explaining how to explain how technology, the economic situation, legislation and environmental expectations can affect business activity..
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